Russian retailer X5 sells Ukrainian stores -report

MOSCOW, March 19 Russian retailer X5 Retail
Group has agreed to sell its stores in Ukraine to local
rival Varus for an estimated $5-10 million, Ukrainian newspaper
Capital reported.

X5 is the first Russian company to pull out of the country
since Russia's annexation of Ukraine's Crimea region that
followed the overthrow of Moscow-backed President Viktor
Yanukovich.

Making Crimea part of Russia after a disputed referendum in
the Black Sea peninsula has caused the worst East-West crisis
since the Cold War, and Kiev has threatened to nationalise
Russian property.

Varus is buying the lease rights to 13 Perekryostok stores
in and near Kiev, as well as in-store facilities and stock,
Capital quoted Varus's co-owner Ruslan Shostak as saying.

Shostak was not immediately available for comment. X5
declined to comment.

According to the company's statements, its Ukraine business
unit's contribution to the financial results is negligible.
According to the 2013 financial report, X5 has 12 stores in
Ukraine out of total of 4,544 mostly across Russia.
(Reporting by Maria Kiselyova and Olga Sichkar, editing by
Elizabeth Piper)

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